Answer:
The answer is option (c) Short 34 contracts
Explanation:
Solution:
Given that
The information about the portfolio is as stated below:
The value of the portfolio = $8.5 million
The beta = 1.3
The future contract of S&P price = $1310
The size of contract = 250
Now,
To hedge the risk completely, the desired beta is =0
Thus,
The number of contracts is calculated as follows:
The Number of contract = (desired beta - portfolio beta)*portfolio value/(future price*contract size)
So,
The number of contracts = (0 - 1.3)*8500000/(1310*250) = -34
Then,
The negative sign means it is going short.
Hence,
A total of 340 contracts must be short.
Answer: D) not been recorded and unearned revenues have.
Explanation:
Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.
Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.
Answer:
unethical communication
Explanation:
unethical communication
unethical communication is that type of communication that sometime unethical for both side of business. it is practice of communication that give rise to doubtfulness in the business.
in the given question , unethical feeling arose due to doubtfulness of job of some employee because they may lost their job when both companies combined to form new one.
Answer:
Consumer surplus increases by $2
Explanation:
The consumer surplus can be defined as the benefit that consumers gain when they pay less for a good that they are willing to pay more for.
a). Determine the final demand as follows;
Price elasticity of demand=% change in price/% change in demand
where;
price elasticity of demand=-1
% change in price={(Final price-initial price)/initial price}×100
Final price=$24
initial price=$25
% change in price=(24-25)/25=(1/25)×100=-4%
% change in demand=x
replacing in the original expression;
-1=-4/x
x=4%
% change in quantity={final quantity-initial quantity/initial quantity}×100
let final quantity=y
4%={(y-100)/100}×100
0.04=(y-100)/100
4=y-100
y=4+100=104
final quantity=104 units
Consumer surplus=(1/2)×change in price×change in quantity
where;
change in price=25-24=1
change in quantity=104-100=4
Consumer surplus=(1/2)×1×4=2
Consumer surplus increases by $2
Answer:
Total cost of goods sold per unit is $35,000
Explanation:
Given Data:
cost for decorative pillow =$75.00 per unit
Total sold unit = 1750
Per unit manufacturing cost
we know that Variable Costing includes only manufacturing cost
Therefore, the total cost of goods as per variable costing can be computed as follow
The total cost of goods sold per unit is $35,000
